Securing E-Commerce Businesses Against Legal Disputes
It can be relatively easy to make a website and start a few e-commerce businesses, or to start selling online the same products you already sell in a brick-and-mortar shop. Since citizens can operate many types of online businesses from home, they are enticing, we understand.
Starting an online business offers you the opportunity to avoid paying for a storefront and having a vast reach across the nation. But, as with any venture, there are risks involved. Before you get started, it’s best to be aware that there are several legal pitfalls anyone could fall victim to. If you have a new or expanded e-commerce business, it’s helpful to consult an attorney specializing in internet law to ensure your systems meet required legal standards.
If you want to protect your e-commerce business from legal challenges, here are some key concepts you should consider:
Privacy Issues And Data Security for E-Commerce Businesses.
The information you collect as a business is vital to your company’s success, but it can be dangerous if mishandled. This information can include personal data such as addresses, phone numbers, and credit cards. To avoid legal issues, develop policies that safeguard any personal data for both your business and customers.
Many states have laws that require companies to create and implement policies that protect customers’ personal information. Because of this, your business needs to ensure that you meet the requirements set forth by these laws so that you do not run into trouble with customers or the state.
Safeguard Against Customer Litigation.
Even small e-commerce websites are not immune from expensive lawsuits. If you sell products and accept credit cards, you must take precautions by purchasing business liability insurance and drafting a clear and concise product warranty policy.
When you sell products online, you open yourself up to legal liability for any defects in those products—even if they were made by a different manufacturer.
Before you start your business, carefully review your terms of use. If you sell products from third parties, be clear about your return policy. If you have a subscription service, clearly lay out how a customer can cancel their account and what will happen if they fail to do so.
Protect Your Website From Security Threats And Fraud
Securing your website is crucial if you don’t want to get ripped off. To help mitigate those risks, use Application Performance Management software. This essential software can help you avoid fraud by finding and fixing any issues on the backend that could open you up to fraud.
Due to standing legal responsibilities implemented in many states, when your business experiences a data breach, you must report the incident to your customers and the public. The deadline for doing so varies, but many states require reporting a breach within 45 days. If you have been negatively affected by such fraud or software breaches, contacting a legal representative for your next steps is critical. We at Thompson Law would be more than happy to help you today.